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Friday October 2, 11:00 am Eastern Time
Company Press Release
SOURCE: Novavax, Inc.
Novavax Repurchases $5.0 Million Series A Custom
Convertible Preferred Stock
COLUMBIA, Md., Oct. 2 /PRNewswire/ -- Novavax, Inc. (Amex: NOX - news), announced today that it has entered into an
agreement with all Series A Custom Convertible Preferred shareholders to repurchase the remaining outstanding full amount of
approximately $5.0 million. Such repurchase will be made at par ($1,000 per share) plus accrued interest of five percent per
annum. The Company anticipates the repurchase will close on or before October 16, 1998. Approximately 1.5 million of the
original 6.5 million issue, has previously been converted into common shares.
Interim president and chief executive officer Mitchell Kelly said, ''We are very pleased to have negotiated an early repurchase
of the Preferred stock at par plus accrued interest. We continue to be focused on our key initiatives including hormone
replacement therapies and the anti-microbial agents announced last week.'' He went on to say that the Company will evaluate its
interim and long-term financing needs and will consider equity financings and collaborative arrangements with corporate partners
along with other sources of funding.
Novavax's clinical development efforts focus on the $2.0 billion market for hormone replacement therapy, utilizing topical drugs
in cosmetic-like cream formulations. Novavax's two lead topical drugs are: ESTRASORB(TM) -- a patchless estrogen
replacement cream, and ANDROSORB(TM) -- a cosmetic- like cream for testosterone replacement therapy in
testosterone-deficient men. Also in pre-clinical development is Helicore(TM) -- a non-antibiotic, anti-bacterial product designed
to eradicate H. pylori, the intestinal bacterium responsible for most cases of peptic ulcer disease.
Novavax recently announced results of certain pre-clinical studies conducted as part of a subcontract to the University of
Michigan. These studies indicated that the Company's anti-microbial technology may effectively inactivate anthrax spores and the
influenza A virus. Funding for these studies has come from DARPA's Unconventional Pathogen Countermeasures Program. The
same technology is currently being tested for additional applications, such as spermicides. In collaboration with the National
Institute of Health, spermicidal testing of several of Novavax's emulsions will begin either late 1998 or early 1999.
Novavax, Inc. is a biopharmaceutical drug delivery company headquartered in Columbia, Maryland.
In addition to historical information, statements made in this press release that state the Company's or management's intentions,
hopes, beliefs, expectations or predictions of the future are forward looking statements. Forward looking statements may involve
risks and uncertainties, including, but not limited to, uncertainties related to the company's early stage of development and clinical
trials and marketability. These factors are more fully discussed in the company annual report on form 10-K/A for the year ended
December 31, 1997 and form 10Q for the quarter ended June 30, 1998.
SOURCE: Novavax, Inc. |
